Inspired Entertainment has revealed its Q4 results for the closing period of 2023, as the firm detailed it remained in line with expectations as it looks to scale higher margin digital verticals.
Nonetheless, the results were filed significantly later than they were anticipated, which led to warnings from the NASDAQ.
The results did indicate that the firm enjoyed revenue growth of 14.7 per cent to $323m. Elevated expenditure did however lead to net income declining slightly for the group, from $20.6m to $7.6m.
Lorne Weil, Executive Chairman of Inspired, said: “Our fourth quarter performance capped off a strong year, fueled by our successful strategic focus on scaling our higher-margin digital verticals alongside steady growth in our land-based operations.
“Our digital business fourth quarter results continue to be led by the Interactive segment, where revenue and Adjusted EBITDA increased approximately 41 per cent and 39 per cent year-over-year on a constant currency basis, respectively, as we continue to increase our footprint through new customer launches and benefit from the growth of our existing customer base.”
The group also lauded its new igaming product, Hybrid Dealer, which was unveiled this year. The RNG-generated table and gameshow content was tapped into by BetMGM in New Jersey and seeks to combine physical and digital elements offering operators the product.
Praising the firm’s land based efficiency, Weil added: “We continue to benefit from the optimisation of our land-based operations and the roll-out of our new ‘Vantage’ terminals. Our land-based business, which includes our Gaming and Leisure segments, recorded strong year-over-year revenue growth of 6 per cent and 8 per cent, respectively.
“During the quarter, we entered into $3.5m of ‘low margin’ terminal sales, whereby products sold today will secure longer term recurring revenue streams utilising an asset-light model. We continue to see low double digit year-over-year revenue per machine increases with these new ‘Vantage’ cabinet deployments across two of our largest licensed betting shop customers. In our pubs business, we expect to benefit from more of these ‘Vantage’ placements during the back half of 2024. As we look ahead, the success of our ‘Vantage’ cabinet rollout gives us confidence in ongoing growth across our land-based gaming portfolio.”
Weil concluded, “As the global online betting and gaming ecosystem continues evolving, with some new markets opening and consumer adoption increasing, we see opportunities for continued growth. Our market-leading Virtual Sports products, distinctly innovative igaming offerings like Hybrid Dealer, and unmatched content portfolio position us at the head of this digital transformation. We are excited about the opportunities ahead as we seek to capitalise on the expanding online betting and gaming markets globally.”
The publishing of today’s results will be viewed as a key boost to the stability of the firm, after previous delays in the past two years were reportedly down to inaccuracies, due to accountancy errors, of which the firm has been focused on fixing ahead of the publishing of this latest set of results.
Furthermore, in spite of the late publishing, the results come in time to save the firm’s status on the NASDAQ as it avoids the most stringent punishment, its removal from the platform.
